MRK Stock Analysis: Merck | NYSE
Drug Manufacturers - General | NYSE, USA | Market Cap: 354.804m USD | 12M Return: 71.3% | US58933Y1055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.34B
EPS Trend: 51.3%
Qual. Beats: 2
Rev. Trend: 95.4%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Merck & Co., Inc. (NYSE: MRK) is a global healthcare company headquartered in Rahway, New Jersey, founded in 1891. It operates two main business segments: human health pharmaceuticals and animal health. The human health portfolio spans oncology, vaccines, infectious diseases, and chronic conditions, with flagship brands including Keytruda (a leading immuno-oncology/PD-1 inhibitor), Gardasil (HPV vaccine), Januvia (diabetes), and Bridion. The animal health division offers livestock and companion animal products under numerous brands, including Bravecto (parasite control for pets) and Nuflor (livestock antibiotic), along with Allflex livestock intelligence solutions.
The pharmaceutical industry is characterized by heavy investment in research and development, long product lifecycles, and reliance on patent protection, with revenue often concentrated in a few blockbuster drugs. Merck supplements its internal pipeline through extensive partnerships and licensing agreements with companies such as Daiichi Sankyo, AstraZeneca, Moderna, Eisai, Bayer, and LaNova, covering areas like antibody-drug conjugates, bispecific antibodies, and COVID-19 treatments.
- Keytruda patent expiration threatens $25B oncology franchise
- Gardasil vaccine sales decline on weak China demand
- Animal Health and new launches diversify post-Keytruda revenue
| Net Income: 3.17b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.15 > 1.0 |
| NWC/Revenue: 13.48% < 20% (prev 17.31%; Δ -3.84% < -1%) |
| CFO/TA 0.15 > 3% & CFO 20.0b > Net Income 3.17b |
| Net Debt (46.8b) to EBITDA (13.8b): 3.38 < 3 |
| Current Ratio: 1.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.47b) vs 12m ago -1.63% < -2% |
| Gross Margin: 75.38% > 18% (prev 75.45%; Δ -0.07% > 0.5%) |
| Asset Turnover: 53.69% > 50% (prev 54.20%; Δ -0.51% > 0%) |
| Interest Coverage Ratio: 4.14 > 6 (EBIT TTM 7.21b / Interest Expense TTM 1.74b) |
| A: 0.07 (Total Current Assets 36.7b - Total Current Liabilities 27.7b) / Total Assets 130b |
| B: 0.49 (Retained Earnings 63.3b / Total Assets 130b) |
| C: 0.06 (EBIT TTM 7.21b / Avg Total Assets 124b) |
| D: 0.48 (Book Value of Equity 41.9b / Total Liabilities 87.8b) |
| Altman-Z'' = 2.93 = A |
| DSRI: 1.02 (Receivables 12.6b/11.8b, Revenue 66.4b/63.7b) |
| GMI: 1.00 (GM 75.45% / 75.38%) |
| AQI: 1.10 (AQ_t 0.52 / AQ_t-1 0.47) |
| SGI: 1.04 (Revenue 66.4b / 63.7b) |
| TATA: -0.13 (NI 3.17b - CFO 20.0b) / TA 130b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of October 10, 2026, the stock is trading at USD 145.60 with a total of 9,287,149 shares traded. Over the past week, the price has changed by +0.90%, over one month by -0.73%, over three months by +17.10% and over the past year by +71.29%.
Current recommended Stop Loss: 137.30 (which is 5.7% or 2.4 ATR below the current price).
Merck has received a consensus analysts rating of 4.22. Therefore, it is recommended to buy MRK.
- StrongBuy: 14
- Buy: 5
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 155.8 | 7% |
P/E Trailing = 115.9758
P/E Forward = 15.2905
P/S = 5.3299
P/B = 8.7124
P/EG = 2.7047
Revenue TTM = 66.4b USD
EBIT TTM = 7.21b USD
EBITDA TTM = 13.8b USD
Long Term Debt = 51.1b USD (from longTermDebt, last quarter)
Short Term Debt = 2.83b USD (from shortTermDebt, last quarter)
Debt = 53.9b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 46.8b USD (calculated: Debt 53.9b - CCE 7.14b)
Enterprise Value = 402b USD (355b + Debt 53.9b - CCE 7.14b)
Interest Coverage Ratio = 4.14 (Ebit TTM 7.21b / Interest Expense TTM 1.74b)
EV/FCF = 25.00x (Enterprise Value 402b / FCF TTM 16.1b)
FCF Yield = 4.00% (FCF TTM 16.1b / Enterprise Value 402b)
FCF Margin = 24.19% (FCF TTM 16.1b / Revenue TTM 66.4b)
Net Margin = 4.78% (Net Income TTM 3.17b / Revenue TTM 66.4b)
Gross Margin = 75.38% ((Revenue TTM 66.4b - Cost of Revenue TTM 16.4b) / Revenue TTM)
Gross Margin QoQ = 73.54% (prev 81.92%)
Tobins Q-Ratio = 3.09 (Enterprise Value 402b / Total Assets 130b)
Interest Expense / Debt = 3.23% (Interest Expense 1.74b / Debt 53.9b)
Taxrate = 46.72% (2.78b / 5.95b)
NOPAT = 3.84b (EBIT 7.21b * (1 - 46.72%))
Current Ratio = 1.32 (Total Current Assets 36.7b / Total Current Liabilities 27.7b)
Debt / Equity = 1.29 (Debt 53.9b / totalStockholderEquity, last quarter 41.9b)
Debt / EBITDA = 3.38 (Net Debt 46.8b / EBITDA 13.8b)
Debt / FCF = 2.91 (Net Debt 46.8b / FCF TTM 16.1b)
Total Stockholder Equity = 48.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.57% (Net Income 3.17b / Total Assets 130b)
RoE = 6.60% (Net Income TTM 3.17b / Total Stockholder Equity 48.1b)
RoCE = 7.27% (EBIT 7.21b / Capital Employed (Equity 48.1b + L.T.Debt 51.1b))
RoIC = 3.78% (NOPAT 3.84b / Invested Capital 102b)
WACC = 5.50% (E(355b)/V(409b) * Re(6.07%) + D(53.9b)/V(409b) * Rd(3.23%) * (1-Tc(0.47)))
Discount Rate = 6.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.25 | Cagr: -1.07%
[DCF] Terminal Value 76.56% ; FCFF base≈15.5b ; Y1≈16.8b ; Y5≈20.5b
[DCF] Fair Price = 108.6 (EV 315b - Net Debt 46.8b = Equity 268b / Shares 2.47b; r=8.35% [WACC [floored]]; 5y FCF grow 9.11% → 2.50% )
EPS Correlation: 51.34 | EPS CAGR: 40.26% | SUE: 1.63 | # QB: 2
Revenue Correlation: 95.44 | Revenue CAGR: 3.67% | SUE: 1.66 | # QB: 2
EPS current Quarter (2026-09-30): EPS=2.19 | Chg30d=-1.10% | Revisions=-62% | Analysts=18
EPS current Year (2026-12-31): EPS=2.73 | Chg30d=-0.47% | Revisions=+39% | GrowthEPS=-69.5% | GrowthRev=+3.3%
EPS next Year (2027-12-31): EPS=9.49 | Chg30d=-0.57% | Revisions=-15% | GrowthEPS=+247.0% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: -9% (up=19, down=23)